Repossession of my house by the bank and your rights
Once your home has been repossessed by the bank can you get it back? This is an unusual question that’s asked by those who are going through the repossession process. But it deserves an answer.
After your home is repossessed, you’ll be homeless. You may still have a mortgage shortfall and you’ll have to find somewhere else to live. But can you get your home back after repossession? In theory yes you could get your house back after repossession. But you’d have to clear the mortgage, the arrears and all the other associated costs of a repossession first. But this is not recommended, you are better to prevent the repossession in the first place.
Can I get my home back after repossession – your options?
If you’re wondering whether you could get your home back after repossession, in theory the answer to this question is yes. But this would be very unusual and not very easy to do.
There are two ways in which this could happen and you get your home back. But this is going to totally depend on your mortgage lender and some goodwill.
Option #1 to get your home back after repossession
The first option, which I’m not sure is legal or whether it’s been tested, is to speak to your mortgage lender. But for them to give you your home back, you’d have to repay in full what you owe to your bank. This would include the following:
- The amount outstanding on your mortgage.
- Any additional interest that’s accrued since the repossession hearing and decision by the judge.
- Your lender’s legal costs, which will include the costs of going to court and the court fees.
- Bills for any repairs and maintenance or other costs, which the bank has suffered before your house is sold.
- Repayment of any other loans that were secured on your property.
In theory, after you’ve repaid all that’s due, your bank would give you your home back. There may be rules to prevent this, but there shouldn’t be anything to prevent this from happening.
However, it will have been an extremely costly process to go through, plus your credit report will be badly affected from going through the repossession. But if this is the option you can achieve, you’ll save in the selling costs of an estate agent or auction fees.
But for you to be able to buy back your home after it’s been repossessed, you need to have come into enough money to buy it. This may mean you’ve come into significant funds, like an inheritance, winning the lottery or Premium Bonds or perhaps an investment has suddenly done well.
A better option would be to have the repossession delayed either before or during the court
I wouldn’t recommend you go through a repossession to then try to buy your home back. But instead find a way to delay the repossession either before it gets to the court hearing or during the court hearing. To do this you need to be communicating with your mortgage lender.
If you are presently going through a repossession, and this is the question on your mind i.e. “Can I get my home back after repossession“, don’t rely on this being the case.
Option #2 to get your home back after repossession
The second option to get your home back, if option #1 doesn’t work, is to buy your property from your mortgage lender. I don’t see any reason why your lender won’t sell it to you as apposed to anyone else. However, if you end up at auction bidding for your property, there’s a chance you may be out-bid.
If your mortgage lender has used an estate agent to sell your property, you will have to speak with the agent concerned. But also, if there are other people looking to buy your home, they may want to pay more than you. If this is the case, your lender would have to accept the higher price.
But in addition to the costs listed in option#1, you’ll also have the selling costs to pay. Which would either be the estate agent’s commission or the auction fees.
However, as with option #1 above, for you to be able to buy back your home after it’s been repossessed, you need to have come into enough money to buy it.
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